Marketing externalities and market development

By: Contributor(s): Material type: TextTextSeries: Policy research working paper, 2839Publication details: Washington, D. C. World Bank 2002Description: 31 pSubject(s): DDC classification:
  • 330.1 E6M2
Summary: The authors use survey data from Bangladesh to present empirical evidence on externalities at household level sales decisions resulting from increasing returns to marketing. The increasing returns that arise from thick market effects and fixed costs imply that a trader is able to offer higher prices to producers if the marketed surplus is higher in villages. The semi-parametric estimates identify highly nonlinear own and cross commodity externality effects in the sale of farm households. The vegetable markets in villages with low marketable surplus seem to be trapped in segmented local market equilibrium. The analysis points to the coordination failure in farm sale decisions as a plausible explanation for the lack of development of rural markets even after market liberalization policies are implemented. http://documents.worldbank.org/curated/en/685901468769259082/Marketing-externalities-and-market-development
Tags from this library: No tags from this library for this title. Log in to add tags.
Star ratings
    Average rating: 0.0 (0 votes)
Holdings
Item type Current library Item location Shelving location Call number Status Date due Barcode
Books Vikram Sarabhai Library KLMDC Move to KLMDC 330.1 E6M2 (Browse shelf(Opens below)) Available 155564

The authors use survey data from Bangladesh to present empirical evidence on externalities at household level sales decisions resulting from increasing returns to marketing. The increasing returns that arise from thick market effects and fixed costs imply that a trader is able to offer higher prices to producers if the marketed surplus is higher in villages. The semi-parametric estimates identify highly nonlinear own and cross commodity externality effects in the sale of farm households. The vegetable markets in villages with low marketable surplus seem to be trapped in segmented local market equilibrium. The analysis points to the coordination failure in farm sale decisions as a plausible explanation for the lack of development of rural markets even after market liberalization policies are implemented.

http://documents.worldbank.org/curated/en/685901468769259082/Marketing-externalities-and-market-development

There are no comments on this title.

to post a comment.